China's Superbank: Debt, Oil and Influence - How China Development Bank is Rewriting the Rules of Finance

Inside the engine-room of China's economic growth—the
China Development Bank

Anyone wanting a primer on the secret of China's economic
success need look no further than China Development Bank
(CDB)—which has displaced the World Bank as the world's
biggest development bank, lending billions to countries around the
globe to further Chinese policy goals. In China’s
Superbank, Bloomberg authors Michael Forsythe and Henry
Sanderson outline how the bank is at the center of China's domestic
economic growth and how it is helping to expand China's influence
in strategically important overseas markets.

100 percent owned by the Chinese government, the CDB holds the
key to understanding the inner workings of China's state-led
economic development model, and its most glaring flaws. The bank is
at the center of the country's efforts to build a world-class
network of highways, railroads, and power grids, pioneering a
lending scheme to local governments that threatens to spawn
trillions of yuan in bad loans. It is doling out credit lines by
the billions to Chinese solar and wind power makers, threatening to
bury global competitors with a flood of cheap products. Another $45
billion in credit has been given to the country's two biggest
telecom equipment makers who are using the money to win contracts
around the globe, helping fulfill the goal of China's leaders for
its leading companies to "go global."

Bringing the story of China Development Bank to life by
crisscrossing China to investigate the quality of its loans,
China’s Superbank travels the globe, from Africa,
where its China-Africa fund is displacing Western lenders in a
battle for influence, to the oil fields of Venezuela.

Offers a fascinating insight into the China Development Bank
(CDB), the driver of China's rapid economic development

Travels the globe to show how the CDB is helping Chinese
businesses "go global"

Written by two respected reporters at Bloomberg News

As China's influence continues to grow around the world, many
people are asking how far it will extend. China’s
Superbank addresses these vital questions, looking at the
institution at the heart of this growth.

HENRY SANDERSON has been a reporter for Bloomberg News
since April 2010. Prior to that, he was a reporter for the
Associated Press in Beijing and Dow Jones in New York. While at
Bloomberg, Sanderson has covered corporate finance, focusing on
China's banks, the bond market, and the emergence of the yuan as an
international currency. He is a graduate of the University of Leeds
(with a BA in Chinese and English literature) and Columbia
University (with a Master's in East Asian Studies).

MICHAEL FORSYTHE has been a reporter and editor for
Bloomberg News since 2000. Prior to that, he was an officer in the
U.S. Navy for seven years, serving on ships in the U.S. 7th Fleet.
The highlight of his career in Washington was overseeing
Bloomberg's coverage of the historic 2008 presidential election.
Since returning to Beijing in 2009, Forsythe has focused on policy
and politics, with particular emphasis on the international impact
of "China Inc." He is a graduate of Georgetown University (with a
BA in International Economics) and Harvard University (with a
Master's in East Asian Regional Studies).

"Despite CDB’s central role in developing China’s
economy and bankrolling the international expansion of Chinese
companies, China’s biggest policy lender rarely makes an
appearance in most English-language chronicles of the
country’s economic rise. All the more reason then to praise a
superbly researched new book, written by two Beijing-based
reporters for Bloomberg, in which CDB finally makes a star
turn."

"Lifting the veil on one of global finance’s least
understood institutions, the book is essential reading for anyone
seeking insight into the workings of Chinese state capitalism."
-- China Economic Quarterly, March 2013
Reviewer: Erica Downs of the Brookings Institution

"China's economy sometimes seems the work of miracles: three
decades of economic growth, with GDP compounding at an annual rate
of around 10%; the world's highest levels of savings and
investment; vast trade surpluses, which feed the largest
foreign-exchange reserves in history. The financial system has
played a key role in delivering these economic feats, and no single
institution within it has been more important than China
Development Bank. "Understand CDB," Henry Sanderson and Michael
Forsythe write in "China's Superbank," "and you understand the core
of China's state capitalism." -- Wall Street Journal review, Feb
27, 2013

"The book is another useful insight into the workings of the
Chinese state apparatus to come out of the Bloomberg bureau in
Beijing – in July it printed an exposé about the family
finances of Xi Jinping, and its website has been blocked since. One
of the most striking aspects of the CDB story is how the bank
managed to balance being a state-owned company with maintaining
sufficient independence to function as a commercial business." --
Irish Times

"Calls for reform in China tend to come in two kinds – one,
the most common in Chinese social media and popular discussion,
calls for a crackdown on endemic forms of local tyranny, such as
land seizures, black prisons, and bribery. The other, found
among liberals within the Party and expatriate businessmen, talks
about rolling back the growing dominance of the state and
state-owned companies over the Chinese economy, opening more
markets to competition and ending the practices that allow
state-owned (or state-blessed) companies to command cheap access to
capital, natural resources, and land. So far, Xi Jinping's term
looks promising for advocates of the first but the book [China's
Superbank: Debt, Oil and Influence – How China Development
Bank is Rewriting the Rules of Finance] makes a case that land
seizures are at the very foundations of China's model of state
capitalism." -- The Diplomat

Connect with Wiley Publicity

China's rise as a global economic superpower, the success of its top companies, and its continuing domestic boom is intricately tied to China Development Bank. This less-than-transparent institution, which is wholly owned by the Chinese government, has become the financial enabler of the nation's growth and is arguably the most powerful bank in the world. While development banks have long existed to financial political projects, infrastructure, and other initiatives, nothing comes close to China Development Bank in scope. Bloomberg journalists Henry Sanderson and Michael Forsythe explores China Development Bank’s hallmark innovation which has transformed China’s landscape in just over a decade by pumping trillions of yuan into various domestic projects.

This book reveals how the Chinese economy really works, and how its state policy bank is influencing world trade and politics. Understanding it will help you convey the complexity of China's financial system.

China’s Superbankoffers substantial material that is exclusive and never been reported, and will bring the story of China Development Bank to life by crisscrossing China to investigate the quality of its loans.

Throughout the book, Sanderson and Forsythe:

Profile Chen Yuan, the Chairman of CDB since 1998, and discuss how he's been instrumental in reasserting the Communist Party in China's economy, while managing to preserve enough independence from the government to make decent investment decisions and function as a commercially driven institution

Analyze CDB's China-Africa Development Fund—China's largest private equity fund investing in Africa—and its attempts to stimulate manufacturing in Ethiopia, and CDB's lending to Ghana

Address CDB's work to secure a steady flow of oil and gas to China through loans-for-energy deals around the world, particularly to Venezuela

Examine CDB's lines of credit that have helped new Chinese firms in telecom and alternative energy win significant global projects, as well as how the bank is developing a new form of private equity financing through CDB Capital.

As China’s influence continues to grow around the world, many people are asking how far it will extend. China’s Superbank addresses this vital question, looking at the institution at the heart of its growth.

About the book:

China's Superbank:

Debt, Oil and Influence - How China Development Bank is Rewriting the Rules of Finance

Since 1996, Bloomberg Press has published books for financial professionals as well as books of general interest in investing, economics, current affairs, and policy affecting investors and business people. Titles are written by well-known practitioners, BLOOMBERG NEWS® reporters and columnists, and other leading authorities and journalists. Bloomberg Press books have been translated into more than 20 languages.

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